Which of the following is most subject to the lemons problem?

Question

Quizplus · Accepted Answer

Credence goods are the most subject to the lemons problem. This is because the quality of credence goods cannot be easily determined by the consumer even after purchase. Examples of credence goods include medical services, legal services, and home repairs. The seller may have more information about the quality of the good or service than the buyer, which can lead to information asymmetry and the possibility of the seller taking advantage of the buyer.

Which of the Following Is Most Subject to the Lemons